BUT I had NO IDEA they were going to release from the SPR!!!

Study this chart carefully because it is the single most manipulated “investment” product in the world today and it just so happens that technicals actually work for price forecasting.

In 2008, while other commodities were flat, this zoomed to $145 because it was the only thing that was “working now”. It then crashed with the rest of the world. But then it recovered rather quickly, just as our President kissed their King. Coincidence?

And then, as every other “investment” began to run higher on the back of trillions of dollars in Quantitative Easing, oil was flat. It simply didn’t move except in the narrow trading range between 75-85. It wasn’t until the “Arab Spring” that prices were subject to fear and financial intermediary hoarding, plus a bit of QE induced hysteria.

Now the Administration needs commodity prices and primarily oil prices to fall in order to prevent another economic blackout. So what do they do? They release oil from the Strategic Reserve to manipulate prices lower. No issue that there is already a glut of oil on the market and demand is actually down. Market manipulation in its most brazen form! Have they no shame?

I want artificially levitated prices of financial assets to correct to their true price discovery, but that would hurt too many banks and investors. So how about instead of blatant manipulation of markets the government simply institutes sound rules that prevent massive price dislocations and egregious misallocations of capital. Would stable markets help stabilize the economy? Lets find out…